City wants it to be harder -- and pricier -- to Airbnb your house

Newark’s push to regulate the growing short-term rental industry fueled by Airbnb is just one step away from taking effect.

The set of tighter measures, which would make it harder and more expensive to offer home rental services, were approved by the City Council on Wednesday after stalling for months. One of the ordinances requiring hosts to get a $250 permit and restricting when homes can be rented is up for a final vote later this month.

“We want to give people an opportunity to rent their places but we want to make sure it’s regulated so neighbors feel comfortable," said Kenyatta Stewart, the city’s corporation counsel.

Airbnb hosts in Newark say the new measures go too far and are short-sighted.

“Regulate and strangulate are two different things and that’s what they did,” said Kimberly Harrison, an Airbnb host for the last two years. “My participation in Airbnb has increased my quality of life. I was able to pay my taxes a little easier. Now I have to re-evaluate what other ways I might be able to generate income."

City officials first proposed the new set of rules in February and many of the more restrictive measures have since been scaled back. Short-term rental hosts no longer have to collect the signatures of everyone on their block and are no longer restricted to renting for a maximum of 60 days. Homes in the city’s historic district will now be eligible for Airbnb rental.

“The original restrictions were a little over-reaching,” North Ward Councilman Anibal Ramos said during Wednesday’s meeting. “Newark, like every other municipality, should have some regulatory practices as it relates to Airbnb.”

Airbnb hosts will have to apply for a $250 short-term rental permit that is valid for one year. Only homeowners will be able to operate short-term rentals. Those seeking a permit:

Cannot have more than two verified incidents with police in the last two years at the rental address or any noise violations in the last two years.

Cannot have any current code enforcement violations.

Must be up to date with all taxes and water and sewer bills.

Must agree to limit one vehicle for every two occupants on the property.

Must have general liability insurance in minimum of $500,000.

The council on Wednesday approved levying a 6% hotel occupancy tax on charges for all short-term rentals. Properties in the city’s tourism improvement district will be taxed an additional 1.5% tax that is also paid by hotels.

“Now that you’ve got to pay all these extra fees, it’s probably going to make me back off,” said Deborah King, who just began using Airbnb to rent her home.

“It’s not fair for them to be cutting into what we’re doing when we’re using our own private homes. It’s ridiculous,” King said.

An Airbnb spokesperson said the company remained concerned about the impact the new rules would have on the hosts and the local economic opportunities short-term rentals create.

“While we appreciate some of the changes that the Municipal Council has made, several key issues remain, and we hope that we can resume conversations with the city in order to find a path forward that fosters responsible short-term rental activity,” the spokesperson said.

The last Airbnb regulation ordinance is up for a final vote on Aug. 20.